ECB raises its deposit rate to 2.50 percent as inflation forecasts rise
The European Central Bank raised each of its three key interest rates by 25 basis points Thursday. From September 16, the deposit facility rate will be 2.50 percent, the main refinancing rate 2.65 percent and the marginal lending rate 2.90 percent.
Staff kept the 2026 headline inflation forecast at 3.0 percent and raised the 2027 and 2028 forecasts to 2.5 percent and 2.1 percent. Growth is projected at 0.9 percent this year, 1.4 percent next year and 1.5 percent in 2028.
The council said the Middle East conflict was adding inflation pressure. It committed to no particular rate path.